DIY

When you first start a business various forms need to be completed and registrations put in place.

If you have the time and are prepared to give it a go, there is no need to pay an accountant to complete the forms or the registrations on your behalf. Most accountants will be willing to do it for you, but at a price. How much? This will depend upon the type of accountant you approach and where in the country you are. Fees in London and the south east tend to be higher than elsewhere in the country.

Forms/registrations include:
Self employed - The newly self employed must register as such with HMRC (the 'new' name for the Inland Revenue) within 3 months. YOU can do this quite simply over the phone by calling: 08459 15 45 15. If your annual earnings will be above £4,465 (and I hope they will be!) you will be responsible for paying weekly National Insurance Contributions of £2.10. When you register HMRC will send you a standing order form so that you can authorise your bank to make monthly payments instead of paying weekly.

VAT - It will usually be worth taking advice from a suitably qualified accountant before deciding when to register for VAT and what type of VAT scheme is most appropriate to your business. Should you register before your turnover reaches the registration threshold? Would the 'flat rate' scheme be beneficial? What about annual accounting?

New company - If you have taken advice and are certain that you want to form a limited company, you can do this on the forms available from Companies House website.